Apr 13, 2022

Are family plans cheaper than individual plans?

Written by LaKenya Hill
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We all know cell phone plans can get pricey, but there are ways to cut the costs. Many providers will tell you that family plans are cheaper than individual plans, but is it really that simple? It actually is! Let’s explore how a family works and how it can save you money on your cell phone bill. 

In general, family plans are shared, meaning families will share either minutes, text messages, a data plan, or all of the above. It all depends on the cell service provider’s arrangement, but most commonly, family plans are shared. 

These plans will vary depending on your service provider. The account owner will pick a plan based on the needs of the family as well. Typically, the more lines that you create on the plan, the lower the price will be for each line.  

The initial price of a family plan can be shocking because the overall cost will be higher than an individual plan. However, when you look at the cost per line, it is cheaper. And as you add more lines, the cost per line usually decreases, ultimately saving money for everyone on the plan. 

A family mobile phone plan, despite the name, doesn’t just have to be shared by family members. You can include friends on a family plan. The primary account owner can add anyone they want to add to the plan. 

However, it is important that you make sure everyone on the plan will commit to paying their portion of the bill on time. As such, only add people you can trust to your plan. If the bill is not fully paid, the responsibility will fall on the primary account holder. 

Consider what you need from a cell phone plan when trying to figure out if a family plan or an individual plan will work better for you. For instance, single plans will give you the flexibility to meet your individual needs and only worry about what you want from a phone plan. 

You can find a plan that accommodates your data, messages, and international travel needs. But a family plan requires all users to share the same plan, so this means that if one user needs more data than others, then the plan should be adjusted to accommodate their needs. Otherwise, they might need to cut back or get their own individual plan instead. 

Here is an example of how a family plan can save you money as the cost per line lowers with each number of lines. 

Carrier

Number of Lines

Cost of a Single Line

Verizon

1 Line

$80

Verizon

2 Lines

$80

Verizon

3 Lines

$55

Verizon

4 Lines

$45

Verizon

5 Lines

$40

There are quite a few family mobile plans to choose from. Here are some of the most popular cell phone carriers and their monthly costs before taxes or other fees. Keep in mind that these prices don’t include any discounts. 

Carrier

Number of Lines

Type of Family Plan

Total Cost Per Month

AT&T

4 lines

Unlimited Starter Plan

$140

Sprint

4 lines

Unlimited Talk and Text, 10GB of data

$100

Verizon

4 lines

5G Unlimited Start

$180

T-Mobile

3 lines

Essentials Unlimited Plan

$105

Xfinity Mobile

4 lines

Unlimited

$120

Family plans are a great way for everyone involved to save money. Make sure that you are on a family plan with people you can trust to pay their portion on time. Also, it is important to tailor your accounts to the highest user. 

For example, if 1 line needs 10 GBs of data, you know that your plan can not be less than a 10GB plan. This helps to avoid overcharges or even one person using up all the data on the plan. There are ways to save money on your cell phone plans and a family mobile plan might be the best way. 

It is cheaper to share a phone plan as long as everyone can agree on needs like data and other special account features.

Yes, it is cheaper that more people on a phone plan.

In most cases, an individual plan is more expensive. Staying on a family plan makes sense unless you are constantly going over things like data and incurring excessive charges.


LaKenya Hill
Written by
LaKenya Hill
LaKenya is a freelance content writer and full-time Ph.D. student in Michigan. She has experience writing for StockX and uses her interest in business and accounting to contribute to her MoneyLion publications. In her spare time, she enjoys practicing and teaching yoga, spending time with her family, and working as a full-time therapist.

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